Types of credit review

Which of the following could be a SECURED loan?

• Auto loan

• Student loan

• Overdraft

If the collateral for your secured loan can be taken away, why get a secured loan?

• Banks typically don't charge interest for the 1st 12 months

• Because they usually have a higher interest rate

• Because they usually have a lower interest rate

• Banks give you an extra 90 days to make a missed payment

What may NOT impact the interest rate on your loans?

• Your level of education

• Your relationship with the financial institution

• Your credit score

• The loan amount

A Cosigner's credit history can be affected by the loan they are cosigned on

• True

• False

How do you avoid paying interest on your credit card (or any other loan for that matter)?

• Always make the minimum payment on time

• Pay interest 1st, then pay what you can on leftover balance

• Always make the full payment on time

• Pay the principal 1st, then pay what you can on interest

Which is TRUE when you make only the minimum payment each month?

• You are charged interest on the remaining balance

• Your credit line is restored to its maximum amount

• Credit card companies have permission to sell your info

• It is the fastest way to pay off your debt

A shorter auto loan term means___monthly payments & ___total interest you'll pay.

• higher, less

• lower, more

• higher, more

• lower, less

Which word represents the total cost of the item you’re purchasing on credit minus any down payment you make upfront?

• Principal

• Term

• Interest Rate

• APR

Each of the following represents an installment loan EXCEPT…

• Home mortgage

• Auto loan

• Student loan

• Credit Card

Why might someone consider choosing a loan with the lowest monthly payment?

• Low payments fit better in their monthly budget

• Low payments indicate low interest rate

• Low payments eventually lead to lower total interest paid

• Low payments help you pay off your loan more quickly